Canaccord Genuity Morning Coffee on Frontline (FRO) and Teekay Tankers (TNK): Keep the Good News Flowin'
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Price: $43.88 -1.28%
Rating Summary:
5 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
Rating Summary:
5 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 12 | New: 20
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Canaccord Genuity Morning Coffee on Frontline (Nasdaq: FRO) and Teekay Tankers (NYSE: TNK): Keep the good news flowin'.
Bloomberg reported that Saudi Arabia, the world’s biggest oil exporter, is booking the most tankers in years to supply the U.S., a sign the kingdom is fulfilling a pledge to compensate for a decline in Iranian sales, Vela, the shipping unit of state-owned Saudi Aramco, booked nine so-called very large crude carriers (VLCC) in the past week to go to the U.S. A further two vessels, each capable of carrying about 2 million barrels, were chartered earlier in March and all 11 are scheduled to load in the last week of this month or first week of April. This compares to Vela booking an average of one VLCC to the U.S. every other month last year. Bloomberg noted that the jump in tanker bookings is helping drive vessel costs higher, with daily rates on the benchmark Saudi-Arabia-to-Japan route recently advancing 2.5% to $33,205. Rates have almost tripled since the first week of March. Last week, the CEO of oil tanker operator Teekay Tankers stated that it expects a better first quarter than last year, echoing views of sector-bellwether Frontline that demand has picked up considerably in recent weeks. Frontline's CEO said demand has risen on surprisingly high activity from ships transporting oil to China.
Bloomberg reported that Saudi Arabia, the world’s biggest oil exporter, is booking the most tankers in years to supply the U.S., a sign the kingdom is fulfilling a pledge to compensate for a decline in Iranian sales, Vela, the shipping unit of state-owned Saudi Aramco, booked nine so-called very large crude carriers (VLCC) in the past week to go to the U.S. A further two vessels, each capable of carrying about 2 million barrels, were chartered earlier in March and all 11 are scheduled to load in the last week of this month or first week of April. This compares to Vela booking an average of one VLCC to the U.S. every other month last year. Bloomberg noted that the jump in tanker bookings is helping drive vessel costs higher, with daily rates on the benchmark Saudi-Arabia-to-Japan route recently advancing 2.5% to $33,205. Rates have almost tripled since the first week of March. Last week, the CEO of oil tanker operator Teekay Tankers stated that it expects a better first quarter than last year, echoing views of sector-bellwether Frontline that demand has picked up considerably in recent weeks. Frontline's CEO said demand has risen on surprisingly high activity from ships transporting oil to China.
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